150 dollars (value of manufacture there where will be involved in job The liberated factors of manufacture). As a whole railway operation

Will increase value of all manufacture by 20 dollars At these numerical values

Clearly that it is better, that the railway was not responsible for caused by it

Damage that will allow to maintain it profitable. Certainly, it is possible to change

Numbers so that will come to light other situations in which it will appear desirable, that

The railway was responsible for a damage. It is enough of it for my purpose,
Which consisted in demonstration of that from the economic point of view
Situation at which there is "not paid damage to wood plantings from
Locomotive sparks ", it is not so necessarily undesirable. Its acceptability
It is defined by concrete circumstances.

How it has turned out, what the analysis of Pigu has yielded false result? The reason that

- , seemingly, has not noticed that its analysis deals absolutely with other

Question. The in itself analysis is correct. But Pigu in absolutely illegal way

Has come to the conclusions. After all a question not in, whether it is necessary to start up the additional

Volume, whether it is desirable to have system in which railways are obliged to compensate

The damage from the fires caused by them, or is better such, where railways not

Are obliged to compensate a damage. When the economist compares the alternative

(social arrangements), it is reasonable to compare legal conditions of managing

The cumulative social product created under various legal conditions.

Comparison of private and public products here is not necessary. A simple example

Shows it. We will imagine a small city in which traffic lights are established.

The driver approaches on a crossroads and stops on red light. No
Cars which would move across. If the driver has ignored the red

Light, would not happen to failure, and the general product would increase, as the driver

Earlier would arrive to destination. Why it has not arrived so? The reason in

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